What Are By-laws in a Strata Scheme?

29 September 2017

By-laws exist in every strata scheme, but what purpose do they serve? They are policies that define the rules for harmonious living within a strata scheme, whether that relates to behaviour of residents and guests or issues such as pets, smoking, parking and the use of common property. These by-laws are kept on the Certificate of Title and they vary from strata scheme to strata scheme.

How are by-laws formed?By-laws are self-defined within each strata scheme. The Strata Schemes Management Regulation 2016 sets out a number of what are called model by-laws that provide a framework for modern strata rules. These model by-laws can be voted in, adapted or alternatively, chosen not to be voted in at all by an owners corporation. A by-law requires a special resolution to be passed, meaning an approval by 75% or more of those eligible to vote. By-laws must meet certain restrictions and conditions, otherwise can be deemed invalidated by the NSW Civil and Administrative Tribunal (NCAT).

What happens if by-laws are breached?

Owners and tenants who live within a strata scheme are obligated to comply with these by-laws, and they may be held responsible for guests visiting them on the strata property too. If a by-law is breached, the alleged offender can be contacted then sent a Notice to Comply with a By-Law via email or letter if the strata committee chooses to issue one by a majority vote.

If the problem persists once this notice has been given then the strata committee may choose to apply to the Tribunal, which can decide to issue a financial penalty for the breach.

Is it possible to change a strata scheme’s by-laws?

Yes, and individual by-laws are amended all the time. It requires a special resolution of 75% approval or more to introduce or amend a strata scheme’s by-laws.

How can I review my strata scheme’s by-laws?

You can review the by-laws of your strata scheme by contacting either your strata manager or the secretary of your strata committee. If you are a tenant, you should receive a copy of the by-laws soon after you sign your tenancy agreement. If you are looking to buy a unit within a strata scheme it is also important to review the by-laws before you sign on the dotted line so you can be sure they will suit your lifestyle. You can view the by-laws via an inspection of the Strata records prior to purchase. The selling agent sometimes has a copy for you if you ask.

Many owners are concerned that planning and budgeting for repairs and maintenance in their schemes is inadequate. Understanding the financial elements at play in your scheme are highly important to it’s ongoing success and to reduce the need for major special levies.

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